The Dollar and TIVA: An Overview of Turkey, Italy, Venezuela, and Argentina
The inverse correlation between the US dollar and emerging markets currencies is a well-known fact. That inverse correlation has been affirmed again over the last few months as the greenback gains ground against emerging markets currencies, in lieu of higher interest...
Weekly Market Update
Market Action The EU began enforcing the General Data Protection Regulation (GDPR), which applies to any company doing business in the bloc and includes new privacy rights as well as data collection responsibilities. The GDPR is backed up with high fines: up to 4% of...
Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State (Interview)
Sir Paul Tucker is a fellow at the Harvard Kennedy School and chair of the Systemic Risk Council. Previously, he was Deputy Governor at the Bank of England, sitting on its monetary policy, financial stability, and prudential policy committees. Internationally, he was...
Weekly Market Update
Market Action The stock market gave back 25% of last week's gains as investors watched US-China trade tensions. Both the Dow and S&P 500 fell 0.5% and the Nasdaq lost 0.7%, while the Russell 2000 gained 1.2%. Treasury yields retreated from multi-year highs earlier...
The Revenge of the Long-Term Cycle: Portfolio Enhancement
In late 1999/early 2000, the excitement of the internet and the dot-com exuberance attracted capital away from investments that require a medium to long-term perspective. The result was that supplies dropped while demand was rising. Welcome to the revenge of...
Weekly Market Update
Market Action Global equities showed a solid advance on the week, helping push the major US benchmarks back into positive territory for the year to date. Crude oil prices reached their highest levels since December 2014. President Trump withdrew the US from the 2015...
Dollar Trajectory and Geopolitical Tensions: The New Thucydides Route
The dollar has been getting stronger at a time when the Chinese have started to price oil in renminbi. In simple statecraft language, such action by the Chinese could just be perceived as unacceptable at a time when the US trade deficit with China stands at such high...
Weekly Market Update
Market Action Argentina’s central bank shocked markets by raising interest rates to 40 percent on Friday. The peso moved nearly 5 percent higher to 21.17 against the dollar, but remains down 15 percent so far this year. Argentina’s treasury minister said the treasury...
Market Isosthenia in a World of Etatism: The Triumph of Illiberalism
We live by appearances and as we pretend that all things are getting better and that debts do not matter we are becoming villains perpetuating a culture of Pyrrhonism[1] where isostheneia (a situation of equal strength) implants and imputes in us a mentality of...
Weekly Market Update
Market Action Global equities were little changed on the week, recovering ground lost at midweek. The yield on the US 10-year Treasury note rose three basis points from last Friday, briefly topping 3% on Wednesday (the first time that threshold had been breached in...
